Question

The international marketing manager of an office furniture company ordered a research report on global telecommunications equipment sales. The report noted that, in the early 1990s, AT&T was awarded a $4 billion contract to provide communication network products and services in Saudi Arabia. The manager took this as a cue to put Saudi Arabia on her information agenda, reasoning that office furniture sales would increase as the country's telephone system was improved. As described here, the marketing manager is viewing Saudi Arabia as a(n):

1) latent market.
2) incipient market.
3) cluster market.
4) existing market.
5) primary market.

Answer 1

The marketing manager is viewing Saudi Arabia as an incipient market for office furniture due to the growth in telecommunication infrastructure, which is anticipated to lead to economic development and increased demand for their products.

Step-by-step explanation:

The international marketing manager of an office furniture company considers Saudi Arabia to be a potential market for growth following the development of the country's telecommunications infrastructure. Given that telecommunications have facilitated easier and more cost-effective long-distance interactions in production and sales, there is a reasonable assumption that an improved communications network could spur economic development and increase the demand for office furnishings as more business activities take place in the region.

Therefore, with the information provided, the manager is viewing Saudi Arabia as an incipient market. This term refers to a market that is in the early stages of development, where demand for certain products or services is expected to grow due to various underlying factors. In this scenario, the expansion of telecommunication capabilities in Saudi Arabia is perceived as a precursor to an increased demand for office furniture.

The prospected increase in demand can also be influenced by other factors such as globalization and international trade agreements, which tend to encourage economic activities and can create new opportunities for businesses to enter and expand in emerging markets.